Yep - another MCC mess...
All I can suggest is that you ignore the wizards and follow the howtos - there are not all that many files to edit.
You can create /etc/sysconfig/network-scripts/ifcfg-eth0 as root either with a text editor, or with
Mine is executeable, so I guess
chmod 755 /etc/sysconfig/network-scripts/ifcfg-eth0
See how you get on.
I think the search 168.0.1 thingy in resolv.conf is because your hostname is set as 192.168.0.1 - it thinks 192 is your hostname and 168.0.1 is your domain name... You should set the hostname as something like pc1.lan or whatever - see the howto.
When you are not online, you don't need anything in /etc/resolv.conf, but it doesn't hurt to have your ISPs nameserver in there. When online it gets set up automatically.
If you insist on trying the wizard, set DHCP to no or whatever the option is (this is covered in the howto by setting BOOTPROTO=static in ifcfg-eth0). Don't need zeroconf. DNS gets set up automatically, but you could enter 126.96.36.199 and 188.8.131.52